Sup trading brahs,
Bitcoin did infact get high for 4/20. That was exciting. Now, we gotta see if we will enter a sluggish hangover phase or continue to the moon.
To recap yesterday’s ideas:
We noted the ascending wedge forming in bitcoin which usually means that buyers are coming in a buying the dips harder and harder as price approaches a resistance level. Usually, this leads to a huge break out as buyers over power the sellers at a key level and leave everyone out of position racing to get on the right side of the trade.
The 240, 252, and 262 levels haven’t been hit yet, and I see no sign of bitcoin slowing down. 252 is a very significant and likely target for bitcoin to reach to. How much price will retrace is uncertain. It could be a little and it could be a lot. This is why bitcoin price action is so crazy. These crazy pumps will happen and send price vertically upwards, leaving a whole bunch of traders confused.
Generally, the heavy buying is a result of smart money with deep pockets entering the market, and when they enter the market, they are not looking for scalps. I think a significant upswing in price is in the cards for bitcoin over the next week or so.
Here is a really good chart for the bulls. For the first time in a long time bitcoin is posting bullish market structure on the daily chart. As you know, the higher the timeframe, the more significant the information becomes. The daily chart is the #1 go to chart for smart money, so you should definitely be incorporating it into your analysis.
Market structure is basically a way to measure the market. A market consists of price swings and retracements. When the market is making higher highs and higher lows, this is a bullish market structure. Structure is broken when price breaks down and creates a lower low. This could be an early sign of a bigger breakdown move forming. In this example, price has broken up and taken out that swing high at 229. 229-230 is a key level. Price may come back to test this level as a resistance turned support type of play.
Overall, this is exciting for bitcoin. Price has broken out and we should expect bigger ranges and more volatility in the near future. Just keep your cool and focus on long opportunities because bitcoin has proven to be strong.
Good Luck Good Trading!